EXCEL

Industries is considering two projects in its capital budget. Both projects' after-tax cash flows are shown below. Depreciation, salvage values, net operating working capital requirements, and tax effects are all included in these cash flows. Both projects have 5 year lives, and they have risk characteristics similar to the firm's average project. HUAs WACC is 10%. (Round your answer to three decimal places) 1. What is Project a's NPV? 2. What is Project bs NPV? 3. If the projects were independent, which project(s) would be accepted? If the projects were mutually exclusive, which project(s) would be accepted? Year Project a Project b 0 -1,240 -1,240 1 650 380 2 385 360 3 310 460 4 295 320 5 340 540